PetSmart SOLD to BC Partners

PetSmart, North America's biggest chain has been sold to BC Partners for $8.7 billion dollars.

According to Fortune magazine, the London-based private equity firm BC Partners has won the auction for retailer PetSmart Inc. This would suggest that BC Partners bested Apollo Global Management, which until yesterday was the front-runner.

The BC Partners press release indicates a purchase price of $83 per share for the Phoenix-based PetSmart which represents a 6.86% premium over PetSmart’s closing price on Friday.

The value of PetSmart stayed low until activist hedge fund Jana Partners amassed a 9.9% stake in the company earlier this year. The PetSmart board responded by launching an auction process led by J.P. Morgan. Jana had threatened to nominate its own slate of directors if it wasn’t satisfied with the results of the auction, although it’s hard to imagine that it would oppose $83 per share.

Longview Asset Management, PetSmart’s second-largest outside shareholder with a 9.02% position, will roll its shares into the company as part of the BC group. Also participating are several limited partners of BC Partners limited partners, including Canadian firm La Caisse de dépôt et placement du Québec et placement du Québec and StepStone Group.

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BC Partners, may be bulking up in animal related assets. It acquired a major animal identification company, Allflex in 2013. Analysts expect to see more purchases as growth slows and a mature Urban Animal value chain continues to consolidate income streams. The acquisition of under valued assets was also a consideration in this purchase.

Industry analysts are watching closely to see how new ownership will change the day to day operations and initiatives of PetSmart.

BC Partners acquires Allflex Holdings for $1.35 Billion

In mid July, Electra Private Equity PLC completed the sale of Allflex Holdings to BC Partners for $1.35 billion. Electra received gross proceeds of $399 million, generating a return on investment of 15 times the original cost of purchasing Allflex in 1998.

BC Partners had announced an agreement to buy Allflex Holdings earlier in the year in a deal that valued the company at $1.3 billion. Later in May, an announcement from BC Partners showed the deal was backed by $810 million of covenant debt financing.

According to industry sources Electra had valued Allflex, its largest investment, at about $240 million dollars. Allflex claims to be the market leader in animal identification and traceability. According to BC Partners, AllFlex has 1,200 employees, operates in sixty countries, is headquartered in France and manufactures products in Brazil, France, Polland and China.


Related reading: 

BC PARTNERS NEWS RELEASE

REUTERS NEWS RELEASE

Allflex USA to acquire Destron Fearing Corporation

Destron Fearing Corporation to Be Acquired by Allflex USA, Inc. for $25 Million


Digital Angel Corporation (OTCBB: DIGA), an advanced technology company
in the field of animal identification and emergency identification solutions, announced today that it has entered into a definitive agreement with Allflex USA, Inc. to sell its animal identification business, Destron Fearing Corporation, for a purchase price of $25 million.

The cash deal is subject to the satisfaction of customary closing conditions, including approval by the holders of a majority of the outstanding shares of Digital Angel Corporation. Closing adjustments, payment of debt and accrued liabilities, escrowed funds and the value of assumed liabilities will reduce the proceeds received from this transaction.

"After exploring all available alternatives and reviewing a number of scenarios with AgriCaptial Corporation, an investment bank hired to evaluate the value of the business and advise the Board of Directors on its strategic options, it was determined that selling Destron Fearing was the best solution to maximize the value of the business for Digital Angel's stockholders and provide the best opportunity for Destron Fearing employees, partners, and customers," said Joe Grillo, Chief Executive Officer of Digital Angel Corporation.

Additional information will be available in Form 8-K that Digital Angel will file with the Securities and Exchange commissions within four business days.

A stockholder meeting and vote is expected to be scheduled in June 2011.


About Destron Fearing Corporation and Digital Angel Corporation:
Destron Fearing Corporation is a subsidiary of Digital Angel Corporation
(OTCBB: DIGA), an advanced technology company in the field of animal
identification and emergency identification solutions. Digital Angel
Corporation's products are utilized around the world in such applications as pet identification, using its patented, FDA-approved implantable microchip; livestock identification and herd management using visual and radio frequency identification (RFID) ear tags; and global positioning systems (GPS) search and rescue beacons for army, navy and air force applications worldwide. For further information please visit http://www.destronfearing.com/ and http://www.digitalangel.com/